Integrated Water Resources Management Akhouryan River I (Project Phase 2)

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In coordination with the BMZ, it was decided in 2021, at the request of the executing agency, to use the funds from Phase 2 to build the water reservoir (Phase 1). The executing agency is endeavoring to implement the measures from Phase 2 itself. As part of the Integrated Water Resources Management (IWRM) Akhouryan River l+ll project, the irrigation system on the Akhouryan River in the Shirak province in Armenia is to be expanded, made more efficient and embedded in a sustainable water use concept tailored to the river catchment area and its user groups. Two project phases are planned for the project. Phase 2 of the project envisages the construction of additional pipe systems for a pilot area and the conversion to efficient irrigation methods in the fields. The implementation of the water management plan, the transition to more productive agriculture and capacity building among various stakeholder groups are supported as part of an accompanying measure. The aim of the second phase is to contribute to increasing agricultural income and reducing the target group's vulnerability to the effects of climate change by connecting additional areas to the gravity irrigation system and introducing efficient irrigation techniques on a pilot basis (FC module objective). The FC measure thus contributes to sustainable and environmentally friendly management of regional water resources and an improvement in the environmental situation. It also has a positive effect on the level of self-sufficiency in the province of Shirak and thus contributes to the food security of the population. Overall, the project promotes the economic development of the rural region and supports the improvement of the living conditions of the population (overarching development policy objective). The target group of the project is the rural population, who will benefit from the connection to the gravity irrigation system and the introduction of efficient irrigation techniques on around 740 hectares of land (around 2,900 people). The total costs of the second phase of the FC measure are estimated at EUR 22.2 million, taking into account the own contribution (VAT exemption) of EUR 3.7 million. A low-interest FC loan of EUR 18.5 million is planned for financing.